Prospect Ridge Resources arranges $800,000 financing

Executive Summary

• Prospect Ridge Resources Corp. announced a non-brokered private placement of up to $800,000 via the issuance of up to 8,888,889 critical mineral flow-through units.
• The company intends to use the gross proceeds to fund its 2026 drilling programs at its Excalibur, Castle, and Camelot copper-gold porphyry projects in British Columbia.
• The financing aims to secure contractors and supplies early in 2026 to mitigate expected summer shortages and alleviate market uncertainty.

Key Details

• Transaction Structure: Non-brokered private placement of up to 8,888,889 critical mineral flow-through units.
• Price: $0.09 per unit.
• Gross Proceeds: Up to $800,000.
• Unit Composition: Each unit consists of one flow-through common share and one-half of a warrant (resulting in one whole warrant per two units).
• Warrant Terms:
  • Exercisable to purchase one non-flow-through common share.
  • Exercise Price: $0.15 per share.
  • Term: Two years after closing.
  • Accelerated Expiry: Warrants expire early if the common shares trade or close on the Canadian Securities Exchange at $0.25 or more for 10 consecutive trading days.
• Use of Proceeds:
  • Incur eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures under the Income Tax Act (Canada).
  • Allocate funds to the 2026 drill programs at the Excalibur, Castle, and Camelot projects.
• Closing Conditions: Subject to necessary approvals, including exchange acceptance.
• Hold Period: All securities subject to a statutory and/or exchange hold period of four months plus one day from closing.
• Finders' Fees: The company may pay finders' fees in compliance with applicable securities laws and exchange policies, subject to regulatory approvals.

Notable Quotes

• Len Brownlie, PhD, President and CEO: "Our multifaceted 2025 exploration campaign was successful in identifying multiple drill targets on the company's Excalibur, Castle and Camelot copper-gold porphyry projects. The next step towards a discovery on each of these projects will be to drill test them. While our recently completed financing added $1.6-million to the treasury to fund the initial 2026 drilling program, the company has elected, in light of further investment interest, to accept additional funds for the program at this time. The additional funds will alleviate market uncertainty and ensure that the company is able to secure all required contractors and supplies early in 2026 -- ahead of an expected shortage in the summer of 2026 -- allowing management to begin drilling as soon as possible and to more fully focus on the program itself."